This
matter came before the Utah State Tax Commission for an Informal Hearing on
XXXXX.James E. Harward, Hearing
Officer, heard the matter for the Tax Commission.XXXXX, CPA, represented the Petitioners.This matter was conducted over long distance
telephone line and electronically recorded.Petitioner presented evidence that they did not meet the filing
requirements as set out in a letter to them dated XXXXX.The Petitioners had income of approximately
$$$$$ for XXXXX, and approximately $$$$$ for XXXXX.Based on this, Petitioners were under the impression that they
had no need to file returns in the State of Utah.In fact, the letter dated XXXXX, specifically says that if they
do not meet the specific requirements listed that they did not have to
file.However, if the Petitioners file
IRS returns and have Utah income, no matter what their Utah income is they are
required to file Utah returns.Petitioners
were unaware of that and were, in fact, mislead as to those requirements.

DECISION AND ORDER

Based
upon the foregoing, it is the Decision and Order that the penalty and interest
for the XXXXX and XXXXX tax years are hereby waived.